TEST BANK FOR Intermediate Accounting 3rd Edition by Elizabeth A Gordon ISBN: 978-0136946694 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!NEW LATEST UPDATE!!!!!

,Intermediate Accounting, 3e (Gordon/Raedy/Sannella)
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Chapter 1 The Financial Reporting Environment
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1.1 Overview of Financial Reporting tv tv tv




1) The financial reporting process generates three basic financial statements.
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Answer: FALSE t v



Diff: 1tv


Objective: 1.1 IFRS/GA t v tv



AP: GAAP/IFRS
t v



AACSB: Application of knowledge
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2) The demand for financial information is based on market participant demand.
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Answer: TRUE t v



Diff: 1tv


Objective: 1.1 IFRS/GA t v tv


AP: GAAP/IFRS
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AACSB: Application of knowledge
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3) Managers of economic entities are best considered to be users of financial information.
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Answer: FALSE t v



Diff: 1tv


Objective: 1.1 IFRS/GA t v tv



AP: GAAP/IFRS
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AACSB: Application of knowledge
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4) Managers of economic entities are best considered to be preparers of financial information.
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Answer: TRUE t v



Diff: 1tv


Objective: 1.1 IFRS/GA t v tv



AP: GAAP/IFRS
t v



AACSB: Application of knowledge
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5) The Securities and Exchange Commission (SEC) regulates financial reporting for publicly traded
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companies.
Answer: TRUE t v t v



Diff: 2tv



Objective: 1.1 IFRS/GA t v tv



AP: GAAP
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AACSB: Application of knowledge
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6) The FASB gives the SEC authority to regulate accounting for publicly traded companies.
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Answer: FALSE t v



Diff: 1tv


Objective: 1.1 IFRS/GA t v tv



AP: GAAP
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AACSB: Application of knowledge
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,7) The Public Company Accounting Oversight Board (PCAOB) sets financial accounting standards and
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oversees the audits of public companies in the United States.
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Answer: FALSE t v t v



Diff: 1 tv


Objective: 1.1 IFRS/GA t v tv



AP: GAAP
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AACSB: Application of knowledge
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8) Financial accounting standards influence the behavior of managers and other internal users.
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Answer: TRUE t v



Diff: 2 tv


Objective: 1.1 IFRS/GA t v tv



AP: GAAP/IFRS
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AACSB: Application of knowledge
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9) Theories and procedures that evolve as a result of lobbying from various groups are examples of
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proactive factors within the legal, economic, political, and social environment.
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Answer: FALSE t v t v



Diff: 1 tv



Objective: 1.1 IFRS/GA t v tv



AP: GAAP/IFRS
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AACSB: Application of knowledge
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10) Financial information includes information that is not governed by rules set forth by the accounting
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standard-setting bodies.
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Answer: TRUE t v t v



Diff: 1 tv


Objective: 1.1 IFRS/GA t v tv


AP: GAAP/IFRS
t v



AACSB: Application of knowledge
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11) What is the term that describes the process of identifying, measuring, and communicating financial
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information about an economic entity to various user groups?
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A) financial reporting tv



B) accounting standard setting tv tv



C) financial statement tv



D) financial accounting tv t



vAnswer: D t v



Diff: 2 tv


Objective: 1.1 IFRS/GA t v tv



AP: GAAP/IFRS
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AACSB: Application of knowledge
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2
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, 12) Which element of financial accounting involves identifying the individuals who demand financial
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information?
A) financial information tv



B) economic entity tv



C) user groupstv



D) legal, economic, political, and social environment
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Answer: C t v



Diff: 1 tv


Objective: 1.1 IFRS/GA t v tv



AP: GAAP/IFRS
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AACSB: Application of knowledge
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13) Which of the following is not one of the four basic financial statements?
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A) balance sheet tv



B) trial balance
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C) cash flows statement
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D) statement of comprehensive income tv tv tv tv



Answer: B t v



Diff: 1 tv


Objective: 1.1 IFRS/GA t v tv



AP: GAAP/IFRS
t v



AACSB: Application of knowledge
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14) Which organization is responsible for promulgating U.S. GAAP?
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A) Financial Accounting Standards Board tv tv tv



B) Public Company Accounting Oversight Board
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C) International Accounting Standards Board tv tv tv



D) Securities and Exchange Commission tv tv tv tv



Answer: A t v



Diff: 1 tv


Objective: 1.1 IFRS/GA t v tv



AP: GAAP/IFRS
t v



AACSB: Application of knowledge
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15) Which organization is responsible for setting auditing standards and overseeing the audits of public
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companies in the United States?
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A) Financial Accounting Standards Board tv tv tv



B) Public Company Accounting Oversight Board
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C) American Institute of Certified Public Accountantstv tv tv tv tv



D) Securities and Exchange Commission tv tv tv tv



Answer: B t v



Diff: 1 tv


Objective: 1.1 IFRS/GA t v tv



AP: GAAP
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AACSB: Application of knowledge
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3
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